Wondering how to lower your Frisco property tax bill without changing your tax rate? If you live in your home as your primary residence, the Texas homestead exemption can reduce your taxable value and put real money back in your pocket. It can feel confusing the first time you file, especially with Frisco split between Collin and Denton counties. This guide breaks it down step by step so you can file on time, avoid common mistakes, and understand how savings flow to your mortgage escrow. Let’s dive in.
What a homestead exemption does
A homestead exemption reduces the taxable value of your primary residence. It lowers the dollar amount of property taxes you owe. It does not change your tax rate. Some parts of the exemption are set by Texas law, and some are adopted by local taxing units like the school district, city, county, or a MUD.
Your total savings depend on two things: the combined tax rate for your property and which local taxing units offer additional exemptions. That is why neighbors can see different savings even if their homes are similar.
Who qualifies in Texas
To qualify for a given tax year, you must both own and occupy the home as your principal residence on January 1 of that year. If you buy mid-year and move in after January 1, you can plan to apply for the next tax year.
The exemption is for your primary residence only. It does not apply to second homes, rentals, or investment properties.
You will need proof of ownership and identification. A copy of your deed or closing statement typically works for ownership. Your Texas driver’s license or ID should show the same address as the property you are claiming. If it does not match, update it or follow the appraisal district’s instructions for alternate proof.
Once approved, your homestead exemption usually stays in place automatically. If you sell, change ownership, or move out, you need to update or reapply as needed.
Exemptions you may add
Beyond the basic residential homestead exemption, additional savings may be available if you qualify:
- Age 65 and older: Eligible homeowners can receive additional reductions for school taxes and may receive a school tax ceiling that limits increases for school taxes at that residence.
- Disabled or disabled veterans: Qualifying homeowners may receive additional exemptions. Disabled veteran exemptions can be substantial and may reach 100 percent in certain cases. Documentation is required.
- Surviving spouse: Some benefits may transfer to an eligible surviving spouse under specific conditions.
Each taxing unit can adopt additional exemptions beyond the state-required pieces. Check which exemptions apply to your property’s school district, city, county, and any special districts.
For statewide rules and definitions, see the Texas Comptroller’s property tax exemptions guidance and its section on the residence homestead exemption. The Comptroller provides the standard eligibility, documentation, and deadline overview.
- Review statewide guidance: Texas Comptroller’s property tax exemptions
- Learn about residence homestead rules: Residence Homestead Exemption
How to file in Collin County (Frisco)
If your Frisco home is in Collin County, you will file with the Collin Central Appraisal District (CCAD). If your home is in Denton County, file with the Denton County Appraisal District (DCAD). Not sure which county covers your parcel? Your closing paperwork, property tax statement, or online appraisal district search will clarify it.
- Collin County properties: Collin Central Appraisal District
- Denton County properties: Denton County Appraisal District
Follow these steps for CCAD filing:
1) Confirm the correct county
Frisco spans Collin and Denton counties. File with CCAD if your parcel is in Collin County. File with DCAD if your parcel is in Denton County.
2) Gather your documents
Have these ready before you start:
- Property account or parcel number
- Copy of deed or closing statement
- Texas driver’s license or ID with the property address
- Your contact information
Tip: If you just closed and the deed is not recorded yet, include your HUD or closing statement as temporary proof. Check CCAD’s guidance for acceptable documents for new owners.
3) Choose your filing method
- Online filing through CCAD’s portal is usually fastest. You will enter your property and owner details and upload documents.
- Paper application by mail is available through CCAD forms.
- In-person delivery may be available depending on CCAD’s current procedures.
4) Submit by the deadline
To receive the exemption for the current tax year, submit a complete application by April 30. If you apply after April 30, the exemption will generally start the next tax year. Check with CCAD for any exceptions.
5) Watch for a decision
CCAD will send an approval or denial notice, and you can also check your account online. Keep your approval letter with your home records. If denied, the notice will explain the reason and how to protest with the appraisal review board.
6) Add any additional exemptions
If you qualify for age 65 or disabled exemptions, you can usually request them on the same application. Veterans will need to upload or submit documentation like a VA determination letter for disabled veteran exemptions.
Timing and deadlines in Frisco
- Key occupancy date: You must own and occupy the property on January 1 of the tax year you want the exemption.
- Application deadline: April 30 is the standard Texas deadline to have it count for that year.
- Missed April 30: You can still file, but it will usually apply to the next year. Ask CCAD about any allowed exceptions.
- Appraisal notices and protests: Appraisal notices usually arrive in spring. A value protest deadline is typically 30 days after the notice is mailed or by May 15, whichever applies locally. Filing a homestead exemption is not the same as protesting value.
For the latest statewide rules and timing, use the Texas Comptroller’s property tax exemptions pages linked above.
Escrow: when savings show up
If you have a mortgage with escrow, your lender collects estimated property taxes monthly and holds the funds to pay your tax bill. When your homestead exemption lowers your taxable value, the annual tax bill drops. Your servicer will perform an escrow analysis, often once a year, to adjust your monthly payment. Changes may not show up immediately in the month after approval.
Servicers follow federal rules for escrow accounts and may keep a required cushion. Depending on timing and whether your escrow was over-collected, you might receive a refund or see a lower monthly payment after the analysis. For a plain-English overview, see the CFPB’s explanation of how escrow analyses work.
Here is a simple example using hypothetical numbers:
- Example assumptions:
- Appraised value: $500,000
- Homestead exemption amount: $25,000
- Taxable value after exemption: $475,000
- Combined tax rate: 2.2 percent (0.022)
- Annual tax without exemption: $500,000 × 0.022 = $11,000
- Annual tax with exemption: $475,000 × 0.022 = $10,450
- Estimated annual savings: $550
- Estimated monthly savings: about $45.83
Use your actual combined tax rate and approved exemption amount to estimate your savings. If your servicer built a cushion, the cash impact in the first year may be smaller, or you might receive a one-time refund.
Common pitfalls to avoid
- Moving in after January 1 and expecting the current-year exemption. If you did not own and occupy on January 1, plan to file for the next year.
- ID address mismatch. Your Texas driver’s license or ID should match the property address. If it does not, update your Texas driver’s license address or follow CCAD’s instructions for acceptable alternate documents.
- Assuming the county will apply it automatically. You must file an application. Once approved, it typically renews until ownership or occupancy changes.
- Expecting the tax rate to drop. Exemptions reduce taxable value. Tax rates are set by local taxing entities.
- Confusing the exemption with foreclosure protection. The exemption lowers the tax bill but does not stop foreclosure if taxes go unpaid.
- Veterans assuming automatic qualification. You must apply and provide VA documentation for disabled veteran exemptions.
- Overlooking separate parcels. If you own multiple parcels with separate tax IDs, confirm how each is assessed and whether the homestead applies.
Quick action checklist for Frisco homeowners
- Confirm whether your home is in Collin or Denton County.
- Collect your parcel number, deed or closing statement, and Texas ID.
- File online with CCAD by April 30 for the current tax year, or with DCAD if your parcel is in Denton County.
- If eligible, request age 65, disabled, or veteran exemptions and include required documents.
- Notify your mortgage servicer once approved. Ask when your next escrow analysis will adjust your monthly payment.
- Save your approval notice with your home records.
We are here to help
If you are buying or just closed on a home in Frisco, getting your homestead exemption right can make a real difference. Our team helps clients track deadlines, gather documents, and understand how the exemption affects escrow and budgeting. If you have questions about your property’s county, your timeline, or additional exemptions, reach out. Your Move. Our Mission.
Connect with Afshan Moosa for local guidance tailored to your Frisco home.
FAQs
What is a Texas homestead exemption for Frisco homeowners?
- It reduces the taxable value of your primary residence, which lowers your property tax bill. It does not change the tax rate.
Who qualifies for a Frisco homestead exemption in Collin County?
- You must own and occupy the home as your principal residence on January 1 of the tax year and provide required documentation like a deed and Texas ID.
Where do I file my Frisco homestead—Collin or Denton County?
- File with CCAD if your parcel is in Collin County and with DCAD if your parcel is in Denton County. Frisco spans both counties.
What is the deadline to file the homestead exemption in Texas?
- Submit your application by April 30 to have it apply for the current tax year. Filing later usually applies to the next year.
How does the homestead exemption affect my mortgage escrow?
- After approval, your lender will run an escrow analysis and may lower your monthly escrow payment. The timing depends on your servicer’s schedule.
Do I need to reapply for my Collin County homestead every year?
- No. Once approved, it generally remains until you move or ownership changes. Update your status if you no longer occupy the home as your principal residence.
What extra exemptions can seniors or veterans claim in Frisco?
- Seniors 65+ may receive additional school tax relief and a school tax ceiling. Disabled and disabled veteran exemptions are also available with documentation.
Can I protest my appraised value if I already filed a homestead?
- Yes. The homestead exemption and an appraisal protest are separate processes with different rules and deadlines.
